Is City Holding Co. overvalued or undervalued?

As of 22 July 2025, the valuation grade for City Holding Co. has moved from expensive to fair, indicating a shift in perception regarding its market value. The company is currently fairly valued, supported by a P/E ratio of 18, a Price to Book Value of 2.86, and an EV to EBITDA of 15.39. In comparison to its peers, City Holding Co. has a P/E ratio that is higher than Axos Financial, Inc. at 13.92, but lower than Associated Banc-Corp, which is considered expensive at 33.17.
In terms of recent performance, City Holding Co. has returned 6.48% over the past year, significantly trailing the S&P 500's return of 17.14%, which may suggest that the stock is not fully capturing its fair value relative to broader market trends. Overall, the combination of its valuation ratios and peer comparisons supports the conclusion that City Holding Co. is fairly valued in the current market environment.